Pfizer To Cut Drug Prices, Announces $70 Billion US Investment, And Discounted Sales Via Trumprx

(MENAFN- Live Mint) Pfizer Inc. is set to unveil plans to lower prescription drug prices at an event on Tuesday alongside President Donald Trump, according to multiple White House officials, as per a report. The announcement will include measures aimed at making medicines more affordable for Americans, particularly those enrolled in the Medicaid program, Bloomberg reported.

Pfizer is expected to implement broad reductions in US drug prices, with Medicaid patients receiving“most favored nation” pricing on select medicines, the news outlet stated. This approach aligns with Trump's ongoing push to bring US drug costs in line with what foreign purchasers pay.

Direct-to-consumer discounts via TrumpRx

The company will also launch discounted direct-to-consumer sales through a planned government website called TrumpRx. This platform will allow Americans to pay cash for certain high-volume drugs at government-negotiated rates.

Investment in R&D and domestic manufacturing

Pfizer will announce a $70 billion investment in research, development, and domestic manufacturing, signaling a major expansion of its US operations.

White House support

“President Trump is doing more to lower healthcare costs than anyone else in Washington, DC,” said White House spokesman Kush Desai.“While Democrats are threatening to shut down the government to subsidize health care for illegal aliens, President Trump is leveraging the power of the federal government to drastically cut drug prices for everyday Americans.”

Policy details and industry pushback

The most-favored-nation pricing policy requires companies to reduce Medicaid prices, match US prices to those abroad for future drugs, and set up discounted direct-to-consumer sales.

Trump's initiative follows letters sent in July to 17 major drugmakers-including Eli Lilly, Novo Nordisk, and Pfizer-demanding compliance by September 29. The President warned he would“deploy every tool in our arsenal” against companies that failed to follow through.

Domestic production and tariffs

In addition to price reductions, Trump has pressed drugmakers to increase domestic production. He recently announced plans to impose 100% tariffs on imported branded or patented drugs unless manufacturers build US plants, with the levies set to begin October 1.

(With Bloomberg inputs)

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